Xiaomi’s star rises as Chinese handset makers gnaw at Samsung’s share: report

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Xiaomi IncBEIJING – Xiaomi Inc, the three-year company known as the Apple of , has become the world’ .5 maker by market share while Electronics Co Ltd’ lead has continued to shrink, a by Strategy Analytics shows.

Three out of the world’ top 5 sellers were Chinese manufacturers in the second quarter, Strategic Analytics said, as low-cost offerings on the Android operating system whittle away ’s market share.

The South Korean giant, which reported its worst quarterly profit in two years on , saw its share slide to 25.2 percent 32.6 percent a year ago, while Chinese rivals Huawei Technologies Co Ltd [HWT.UL] and Lenovo Group Ltd have gained, Strategy Analytics said.

The latest figures illustrate how – although still dominant – has lost its footing two years after it overtook Apple Inc as the world’s market leader.

Even though smartphone sales rose to 295.2 million units during the second quarter 233 million a year ago, Samsung was the only major manufacturer to a drop in absolute number of shipments. [eap_ad_2] Samsung warned investors on that the second half of 2014 will remain “a challenge”, citing competition its rivals.

Xiaomi claimed 5.1 percent of global smartphone sales in the second quarter, up sharply from just 1.8 percent a year earlier.

“Xiaomi’s next step is to target the international market in Asia and Europe, where it will have to invest big money to familiarize Western with its unfamiliar brand name,” said Strategy Analytics Woody Oh, who called Xiaomi the star performer in the second quarter.

Apple saw its market share shrink to 11.9 percent from 13.4 percent and remained a distant second place.

The Strategy Analytics study aligns closely with estimates released this week by IDC, which reported a similar drop in Samsung sales.

LG held sixth place in the Strategy Analytics and fifth place according to IDC estimates. (Reuters)[eap_ad_3]